Tenet No Longer In Talks To Acquire CT Hospitals

Tenet Healthcare Corporation will no longer be entering into Connecticut to acquire five hospitals, according to a statement released by Tenet and Gov. Malloy. Both sides have failed to come to an agreement and have ended negotiation talks. The news comes after Tenet and the Malloy Administration promised in January to revive the deals. Tenet has spent two years trying to make the acquisitions, which included Waterbury, St. Mary’s, Bristol, Manchester Memorial, and Rockville General hospitals. In a statement, Malloy said “the environment for both providers and state governments is complex and rapidly changing. Unfortunately, the issues that separated us simply could not be overcome.”

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Tenet CEO: Plans To Acquire CT Hospitals Could Be Revived

The CEO of Tenet Healthcare, Trevor Fetter, has sent a letter to Connecticut Governor Dannel P. Malloy saying that he is open to coming back to the negotiating table to acquire five Connecticut hospitals if the state loosens some of its regulatory requirements. Several conditions would have to exist for Tenet to reconsider acquiring Waterbury, St. Mary’s, Bristol, Manchester Memorial, and Rockville General hospitals. Fetter emphasizes that any conditions placed on its deals must apply equally to all hospitals in the state as well as other organizations interested in buying a hospital in Connecticut – whether they are nonprofit or for-profit operators. Malloy sent a letter earlier this month urging Fetter to send a Tenet representative to meet with Mark Ojakian, the governor’s chief of staff, to negotiate a deal. In December, Tenet pulled out of its plan to acquire five Connecticut hospitals after state regulators issued 68 conditions on the purchase that would bar layoffs and price increases for at least five years.

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Tenet Abandons Plans To Acquire Connecticut Hospitals

Tenet Healthcare has officially pulled the plug (for now) on its acquisition of four Connecticut hospitals. Tenet notified government officials that it would not continue its pursuit of buying Waterbury Hospital, St. Mary’s Hospital, Bristol Hospital, and Eastern Connecticut Health Network to convert them from non-profit hospitals to for-profit ones. Tenet cites the extensive list of proposed conditions as reasons for pulling out of the four transactions. Tenet’s decision has widespread impact on Connecticut’s healthcare industry and also creates a political problem for Governor Dannel P. Malloy and his state legislature. Connecticut hospitals were depending on Tenet for capital to remain economically viable long-term and now may need to find other partners or ask the state legislature for funding increases.

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Study: Hospital Ownership Of Doc Groups Leads To Higher Costs

According to a new study in the Journal of the American Medical Association, hospitals and healthcare systems may want to rethink plans to acquire physician practices to increase care coordination. The new research finds that hospital ownership of physician groups in California led to a 10 to 20 percent increase in overall costs. The study was conducted to assess whether total expenditures per patient were higher in physician practices owned by hospitals or multihospital systems compared to organizations owned by participating physicians. Researchers analyzed total expenditures of care provided to 4.5 million patients treated by integrated medical groups and independent practice association in California between 2009 and 2012. Expenditures per patient were 10.3 percent higher for hospital-owned physician organizations than physician-owned organizations after researchers adjusted for patient severity and other factors.

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Tenet Spending About $535 Million To Acquire CT Hospitals

According to recent filings with state regulators, Tenet Healthcare Corporation is ready to spend approximately $535 million to acquire and improve four Connecticut hospitals and related subsidiaries. Tenet has already purchased Waterbury Hospital for $45 million and will invest $55 million in improvements. More recent regulatory filings indicate Tenet has deals with Eastern Connecticut Health Network, Bristol Hospital, and St. Mary’s Hospital.

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Can Healthcare Systems Fully Integrate After Acquiring Physician Practices?

A new Becker’s Hospital Review article reveals that many mergers between healthcare systems and physician practices do not work due to that fact that healthcare systems focus on the external aspects of a merger instead of the internal ones. Healthcare systems become “random collections of hospitals and physician groups” instead of integrated systems. Experts say part of the problem lies in the fact that healthcare leaders do not develop specific measures to make sure their integration efforts work. Some healthcare systems are even reporting that their business from physician groups has decreased since purchasing the group.

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